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Insecticides (India) Ltd.: Experts' corner
532851 INSECTICID Group (B) BSE data
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Management speaks
Rajesh Aggarwal
Rajesh Aggarwal
Managing Director
Insecticides (India) Ltd.
February 23, 2011, 11:45 am
Why should an investor buy your company's stock?

Insecticides (India) Ltd (IIL) is growing at a rate of 30%, against an industry average of hardly 10%. In the next three years, it is poised to grow 40% p.a. due to the establishment of new plants and introduction of new products. 

Victor, Lethal, Thimet are leading brands across the country. The company also plans to launch series of new products every year.

IIL has an approved R&D centre that has bagged NABL accreditation. The centre has developed over two dozen technologies and is continuously working on technology improvement and developing new processes.

What events do you expect in your industry sector over the next few months? Are these hurdles or catalysts?

Farming in India is changing, and the farmer is eagerly adopting new technology. He is making money due to the increase in the prices of agricultural commodities, caused by a high population growth rate and shrinking agricultural land.

There is also a manpower shortage in the agriculture sector due to NREGA (National Rural Employment Guarantee Act) and other reasons. Farmers are using hybrid seeds instead of home-grown varieties, which has increased their interest in saving the crop.

Farmers are not only using more herbicides, but also fungicides and insecticides with other agricultural inputs.

What growth initiatives has your company planned?

As far as future growth goes, the company’s two new plants will be operational in the year 2011-12, which will lead to higher growth in the top line and bottom line. Further, company is tying up to sell exclusive products in the Indian market, which will add to the growth and goodwill of the company. Our endeavour to buy brands is on, and we are in the advanced stages of cracking a deal.

Dahej will provide a big opportunity in terms of location and capacity and Udhampur will help improve IIL’s bottom line. There will be further enhancement in R&D; we are working towards GLP accreditation.   

Who is your competition? What differentiates you from them?

There are 30-35 organised national players, including MNCs, large Indian companies and regional players. They are mostly manufacturers of technical products as well as formulations.

Most companies set up technical plants for one or two products and then establish their brands in the market. This is because setting up technical plants is an expensive affair.

IIL has established itself as a leading formulator with lead brands acquired through takeovers, leasing and establishing the image of new-generation products. We provide complete solutions to farmers with over 90 products in 600 packs.

A retailer’s/ wholesaler’s counter is complete with the IIL range of products. Our investment in plants was low since we established formulation plants first. ROI was always high.

There was a ready demand for technical products for home consumption. To divide our risk, We have established multipurpose plants to manufacture about a dozen products.    

How do you see your company performing over the next financial year?

We project a growth rate of around 40% in the coming year, as both the plants will be functional shortly.